Derivatives Quiz currently, long, following, position, contract

transferpricing

You currently have a short futures position in the S&P 500 contract. Which of the following set of trades results in a synthetic long equity position?

A) Short Treasuries + Long S&P futures
B) Long Treasuries + Long S&P futures x2
C) Long Treasuries + Long S&P futures

ohai

B? You need a long treasury position and a long futures position to equitize the cash.

Roflnadal

B

NO EXCUSES

Windjam

I remember the long treasuries + Long S&P Futures but why X2?

bkballa

If he's short futures he needs to go long to offset those. Then he must go long to get positive equity exposure.